All you need to know about Bitcoin, and how to use it wisely

With the development of the digital world, the way we consume has changed significantly, as have our means of payment. The currency has now become virtual as Bitcoin. Its high volatility makes it a very popular currency, 1 Bitcoin costs a little more than $ 19,000. By the time you are reading this article the value of Bitcoin may have skyrocketed even more or might have dropped. To check the Bitcoin value, just google search for ” Bitcoin value in USD “. Discover all there is to know about it.

What is a Bitcoin?

Bitcoin is a virtual currency invented in 2009 by Satoshi Nakamoto which has been very successful in recent years, especially since its price has risen sharply! It has also allowed many people, who had bought in 2009 to make a huge profit by selling them later. This is particularly the case of Kristoffer Koch who had bought 5,000 bitcoins for 18 Euros, 4 years later these bitcoins were worth 615,000 Euros and allowed him to buy an apartment.

How does Bitcoin work? and How to trade bitcoin online?

To understand how this currency works, we must know that there are no intermediaries between people, and therefore no regulation strictly speaking like the Central Bank. Getting it is very simple, just open an electronic wallet to buy or sell them on Bitcoin trading platforms such as “Coinbase“, “LocalBitcoins“, “Kraken” etc. which take commissions on the realized actions. However, to fight against money laundering, barricades have been put in place on certain purchases, beyond € 1,000 per day and € 6,000 per month, you must be able to justify your funds to the supervisory authorities. But in some countries, no law has been formed for regulating Bitcoins or to stop money laundering.

Who controls bitcoin? and Which is the Safest way to buy bitcoin?

The system is very organized, all transactions are listed in a “big book”: the “blockchain“, which is controlled by users. Called the “miners” they control the transactions against a remuneration. This is also the only and best way to generate, they are emitted in small quantities and at a regular rate by an algorithm. However, the creator of Bitcoin has planned to stop emissions from 21 million bitcoins in circulation and better manage the currency issued.

What are the advantages of using Bitcoin?

This currency has many advantages, including anonymity, low fees, since the exchanges do not pass through the banks. It’s possible to use them in any country, and no one can freeze your account. On the other hand, if your wallet is hacked or if a platform closes, your bitcoins fly away with no possibility of return.

Where can I spend Bitcoin?

Since 2014, capital gains realized during resales have to be declared as non-commercial profits and are therefore taxable. Today, this means of payment is democratized and it is more and more easy to pay for your purchases! You can buy on the internet or at merchants (who accept it of course), without the possibility of the refund.